Updated almost 7 years ago on . Most recent reply
Would you invest in a cash flowing property w/ lead issues??
I am looking at a heavily discounted, cash flowing commercial property, there is a long term tenant in place who has been there for many years and has a contract to stay for 5 more. Im buying the property for 20% more than the land value, its a complete steal but there is a bad environmental issue with the lead paint, I own other rentals but have never dealt with this before. I actually dont even know the cost to clean it up but Im getting a specialist to come see it tomorrow. The asking price on the property is $250k and its rented at $4k/mo now for 5 more years. Its a 25,000 sq ft lot with a small 2000 sq ft home + some storage units.
Im sure it costs alot to clean it up and thats why the owner is selling, but from what Im told there is no financing this property by any bank so it has to be cash only, which is fine but I also dont want to be liable for anything from the past. I will clean it up completely if its possible, we will find out tomorrow. Would I be liable for issues to say the tenants from before I took ownership if they claim they got sick or something?
I know when something is too good to be true it is, but the business renting has been in place maybe 15 years, the land is worth maybe $200k by itself, i feel like this is a steal to have so much cash flow but im trying to learn more about this lead issue and how big an issue it is, the realtor sent me this 30 page report on it, but i have no idea what any of it means